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3-1
Learning Objectives
3-1. Describe the environmental forces
that affect the companys ability
to serve its customers.

3-2. Explain how changes in the

demographic and economic
environments affect marketing
decisions.

3-3. Identify the major trends in the

firms natural and technological
Copyright 2017 Pearson Education, Ltd. 3-2
Learning Objectives
3-4. Explain the key changes in the
political and cultural environments.

3-5. Discuss how companies can react

to the marketing environment.

Copyright 2017 Pearson Education, Ltd. 3-3

First Stop: Philips
Analyzing the Marketing Environment in the Middle
East

Philipss analysis
of market needs
such
as demands for
energy-efficient
products like
LEDshas driven
its continuous
growth in this
region.
Copyright 2017 Pearson Education, Ltd. 3-4
Learning Objective 3-1
Describe the environmental forces
that affect the companys ability to
serve its customers.

Copyright 2017 Pearson Education, Ltd. 3-5

Marketing Environment
Outside forces that affect marketing
managements ability to build and
maintain successful relationships
with target customers
Microenvironment: Actors close to
the company that affect its ability to
serve its customers
Macroenvironment: Larger societal
forces that affect the
microenvironment
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Figure 3.1 - Actors in
the Microenvironment

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The Company
Interrelated groups in a company
form the internal environment

Departments share the responsibility

for understanding customer needs
and creating customer value.

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Suppliers
Provide the resources needed by the
company to produce its goods and
services

Supplier problems seriously affect

marketing
Supply shortages or delays
Labor strikes
Price trends of key inputs

Copyright 2017 Pearson Education, Ltd. 3-9

Suppliers

Honda has
developed
healthy,
long-term
supplier
relationship
s.

Copyright 2017 Pearson Education, Ltd. 3-10

Marketing Intermediaries
Marketing intermediaries help the
company to promote, sell, and
distribute its products to final buyers.
Resellers
Physical distribution firms
Marketing services agencies
Financial intermediaries

Copyright 2017 Pearson Education, Ltd. 3-11

Marketing Intermediaries

Coca-Cola
provides its
retail partners
with much
more than just
soft drinks. It
also pledges
powerful
marketing
support.
Copyright 2017 Pearson Education, Ltd. 3-12
Competitors

Marketers must gain strategic

advantage by positioning products
strongly against competitors.
No single strategy is best for all
companies.

Copyright 2017 Pearson Education, Ltd. 3-13

Publics
Publics: any group that has an actual
or potential interest in or impact on an
organizations ability to achieve its
objectives
Financial
Media
Government
Citizen action
Local
General
Internal
Copyright 2017 Pearson Education, Ltd. 3-14
Customers
Five types of customer markets
Consumer markets
Business markets
Reseller markets
Government markets
International markets

Copyright 2017 Pearson Education, Ltd. 3-15

Figure 3.2 - Major Forces in
the Companys
Macroenvironment

Copyright 2017 Pearson Education, Ltd. 3-16

Learning Objective 3-1
Summary
Companys microenvironment
Company, suppliers, marketing
intermediaries
Competitors, publics, customers
Forces in the companys
macroenvironment
Demographic
Economic
Natural
Technological
Copyright 2017 Pearson Education, Ltd. 3-17
Learning Objective 3-2

Explain how changes in the

demographic and economic
environments affect marketing
decisions.

Copyright 2017 Pearson Education, Ltd. 3-18

Demographic Environment
Demography is the study of human
populations in terms of size, density,
location, age, gender, race,
occupation, and other statistics.
Marketers analyze:
Changing age and family structures
Geographic population shifts
Educational characteristics
Population diversity

Copyright 2017 Pearson Education, Ltd. 3-19

Demographic Environment
The U.S. population contains several
generational groups:
Baby Boomers
Generation X
Millennials (or Generation Y)
Generation Z

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Demographic Environment

GEs
Artistry
appliance
line is
designed
to
target
Millennial
s.
Copyright 2017 Pearson Education, Ltd. 3-21
Economic Environment
Economic factors affect consumer
purchasing power and spending
Changes in consumer spending
Differences in income distribution

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Learning Objective 3-2
Summary
Demographic environment
Age and family structures
Geographic population shifts
Education characteristics
Population diversity
Economic environment
Changes in consumer spending and
income distribution

Copyright 2017 Pearson Education, Ltd. 3-23

Learning Objective 3-3
Identify the major trends in the firms
natural and technological
environments.

Copyright 2017 Pearson Education, Ltd. 3-24

Natural Environment
Physical environment and natural
resources needed as inputs by
marketers or affected by marketing
activities
Environmental sustainability
concerns have grown steadily over the
past three decades.
Trends:
Shortages of raw materials
Increased pollution
Copyright 2017 Pearson Education, Ltd. 3-25
Technological Environment
New technologies create new
markets and opportunities.
Radio-frequency identification (RFID) is
technology to track products through
various points in the distribution
channel.
Government agencies investigate
and ban potentially unsafe products.

Copyright 2017 Pearson Education, Ltd. 3-26

Technological Environment

Disney is
taking RFID
technology to
new levels
with its cool
new
MagicBand
RFID
wristband. Copyright 2017 Pearson Education, Ltd. 3-27
Learning Objective 3-3
Summary
Natural environment
Shortage of raw materials and high
pollution levels
Government intervention
Environmental sustainability
Technological environment
Radio-frequency identification (RFID)
Government regulation

Copyright 2017 Pearson Education, Ltd. 3-28

Learning Objective 3-4
Explain the key changes in the political
and cultural environments.

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Political Environment
Forces that influence or limit various
organizations and individuals in a
society
Laws, government agencies, and
pressure groups

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Major U.S. Legislation
Affecting Marketing
Legislation regulating business is intended
to protect
companies from each other
consumers from unfair business
practices
the interests of society against
unrestrained business behavior

Copyright 2017 Pearson Education, Ltd. 3-31

Major U.S. Legislation
Affecting Marketing: 1990 -2010
Legislation Purpose

Childrens Television Act Limits the number of commercials

(1990) aired during childrens programs

Nutrition Labeling and Requires that food product labels

Education Act (1990) provide detailed nutritional
information
Telephone Consumer Establishes procedures to avoid
Protection Act (1991) unwanted telephone solicitations

Americans with Disabilities Makes discrimination against people

Act (1991) with disabilities illegal

Copyright 2017 Pearson Education, Ltd. 3-32

Major U.S. Legislation
Affecting Marketing : 1990 -2010
Legislation Purpose
Childrens Online Privacy Prohibits online collection of
Protection information from children without
Act (2000) parental consent
Allows parents to review
information collected from their
children
Do-Not-Call Implementation Act Collects fees from telemarketers
(2003) for the enforcement of a Do-Not-
Call Registry
CAN-SPAM Act (2003) Regulates the distribution and
content of unsolicited commercial
e-mail
Financial Reform Law (2010 Created the Bureau of Consumer
Financial Protection: Writes and
enforces rules for the marketing
of financial products to
Copyright 2017 Pearson Education, Ltd. 3-33
Socially Responsible
Behavior
Socially responsible companies
actively seek out ways to protect the
long-run interests of consumers and
the environment.

Companies develop policies,

guidelines, and other responses to
complex social responsibility issues.

Copyright 2017 Pearson Education, Ltd. 3-34

Cause-Related Marketing
Companies use cause-related
marketing to
Exercise their social responsibility
Build more positive images

Primary form of corporate giving

Controversystrategy for selling

more rather than a strategy for
giving Copyright 2017 Pearson Education, Ltd. 3-35
Cause-Related Marketing

AT&T joined
forces with
competitors
Verizon,
Sprint, and
T-Mobile to
spearhead
the It Can
Wait
campaign.
Copyright 2017 Pearson Education, Ltd. 3-36
Cultural Environment
Institutions and other forces that
affect a societys basic values,
perceptions, and behaviors
Persistence of cultural values
Core beliefs and values have a high
degree of persistence.
Secondary beliefs and values are more
open to change.

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Cultural Environment
Shifts in secondary cultural
values of peoples views about
Themselves
Others
Organizations
Society
Nature
Universe

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Cultural Environment

Yogi appeals to
tea drinkers
with a more
spiritual view
of themselves,
their lives, and
their teas.

Copyright 2017 Pearson Education, Ltd. 3-39

Learning Objective 3-4
Summary
Political environment
Laws, government agencies, and
pressure groups
Legislation affecting marketing
Socially responsible behavior
Cultural environment
Core and secondary beliefs
Shifts in secondary cultural values

Copyright 2017 Pearson Education, Ltd. 3-40

Learning Objective 3-5

Discuss how companies can react to

the marketing environment.

Copyright 2017 Pearson Education, Ltd. 3-41

Responding to the
Marketing Environment
Reactive firms passively accept the
marketing environment and do not
try to change it.
Proactive firms develop strategies to
change the environment.
They take aggressive actions to affect
the publics and forces in their marketing
environment.

Copyright 2017 Pearson Education, Ltd. 3-42

Learning Objective 3-5
Summary
Responding to the marketing
environment
Reactive firms
Proactive firms

Copyright 2017 Pearson Education, Ltd. 3-43

Learning Objectives
3-1. Describe the environmental forces
that affect the companys ability
to serve its customers.

3-2. Explain how changes in the

demographic and economic
environments affect marketing
decisions.

3-3. Identify the major trends in the

firms natural and technological
Copyright 2017 Pearson Education, Ltd. 3-44
Learning Objectives
3-4. Explain the key changes in the
political and cultural environments.

3-5. Discuss how companies can react

to the marketing environment.

Copyright 2017 Pearson Education, Ltd. 3-45